PHC rules FED on unprocessed tobacco is illegal

PESHAWAR: In a significant relief for the tobacco industry, the Peshawar High Court (PHC) has ruled that Federal Excise Duty (FED) cannot be levied on green leaf or hand-stemmed tobacco unless it has undergone processing and conversion through a Green Leaf Threshing (GLT) unit. The court also ordered the immediate release of 3,375 kilograms of seized hand-stemmed tobacco and a vehicle belonging to a tobacco company, setting aside the Federal Excise Duty demand against the consignment. A division

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